Financial Performance - Net sales for 2022 were $1,819 million, an increase from $1,595 million in 2021, representing a growth of approximately 14.0%[239] - Other revenue increased to $8,853 million in 2022 from $6,000 million in 2021, primarily due to reduced gift card redemptions[240] - Total revenue for 2022 was $241,568, down from $271,290 in 2021, reflecting the overall decline in company-operated restaurant sales[292] - Contribution to net earnings for 2022 was $9,383, down from $11,235 in 2021, reflecting the overall decline in revenue[292] - Earnings before income taxes significantly increased to $24,539 million in 2022, compared to $9,713 million in 2021, marking a 153.5% rise[307] - Contribution to net earnings for 2022 was $18,593 million, up from $7,528 million in 2021, representing a 147.5% increase[307] Costs and Expenses - Cost of food in 2022 was $502 million, accounting for 27.6% of net sales, compared to $448 million or 28.1% in 2021[239] - Labor costs for 2022 were $500 million, which is 27.5% of net sales, up from $435 million or 27.3% in 2021[239] - Selling, general and administrative expenses decreased to $51,833 million in 2022, or 21.5% of total revenue, compared to $57,186 million or 21.1% in 2021[241] - The cost of food at company-operated units was $44,461, or 29.8% of net sales, compared to $55,315, or 29.4% in 2021, showing a consistent percentage despite a decrease in total cost[295] - Interest on obligations under leases decreased to $5,493 in 2022 from $6,039 in 2021, attributed to the maturity and retirement of lease obligations[297] - Asset impairments decreased by $1,115 in 2022 compared to 2021, as fewer underperforming stores were affected by the pandemic[296] Franchise Operations - As of December 31, 2022, there were 545 total company-operated and franchise restaurants, with 39 of the 177 company-operated Steak n Shake stores closed[264][265] - Franchise royalties and fees decreased to $19,678 million in 2022 from $21,736 million in 2021, due to the closure of certain traditional franchise stores[270] - Franchise partner fees increased to $63,853 in 2022 from $55,641 in 2021, with 175 franchise partner units as of December 31, 2022, compared to 159 in 2021[294] Investment and Cash Flow - Net cash provided by operating activities decreased to $127,825 million in 2022 from $228,767 million in 2021, a decline of 44.1%[315] - Net cash used in investing activities increased to $136,605 million in 2022, compared to $58,525 million in 2021, a rise of 133.4%[315] - The company acquired Abraxas Petroleum for $58,274 million in 2022, contributing to the increase in investing activities[343] - Investment partnership losses for 2022 were $(75,953), compared to gains of $10,953 in 2021, indicating a significant downturn in investment performance[287] - Investment losses were $3,393 million in 2022, compared to gains of $6,401 million in 2021, indicating significant volatility in earnings[336] Oil and Gas Operations - The average West Texas Intermediate price per barrel for 2022 was approximately $94.53, up from $68.17 in 2021, indicating a significant increase in oil prices[283] - Oil and gas revenue for 2022 was $46,091 million, a 39.5% increase from $33,004 million in 2021[307] - Oil and gas production costs rose to $13,355 million in 2022, up from $10,470 million in 2021, reflecting a 27.5% increase[307] Tax and Reserves - The consolidated income tax benefit was $10,722 million in 2022, compared to an expense of $6,789 million in 2021, primarily due to a tax benefit for investment partnership losses[339] - Proved reserves of oil and natural gas are estimated quantities that are economically producible under existing conditions, including both developed and undeveloped volumes[348] - Proved developed reserves are expected to be recovered through existing wells with current equipment and methods[348] - Proved undeveloped reserves are anticipated to be recovered from new wells on undrilled proved acreage or from existing wells requiring additional expenditure for recompletion[348] - Estimates of reserves are subject to change as new information becomes available due to inherent uncertainties and limited reservoir data[348]
Biglari (BH_A) - 2022 Q4 - Annual Report